A wait and see attitude of each customer on the Ni containing coldrolled stainless steel sheets in the Asian area is felt to havebeen strengthened further as prices of material nickel fell belowUSD 8 per pound in late March 2012. With this, negotiations becomequiet. When prices of material nickel were set at USD 9.50 per pound atone time of February 2012, the Asian cold rolling mills offeredmarkups of more than USD 300 and the Japanese mills also offeredtheir prices at USD 3,200 CNF. However, as the nickel pricescontinued to drop subsequently, most of the mills had cut theirprices by about USD 200 till now. Bottoming out of prices wasexpected at this point, and some customers moved to fill theirinventories, but as the nickel prices dropped once again just whenthe market was expected to turn around, the market is showing adownturn. Plain Chain Necklace
Taiyuan Iron & Steel of China decreased its domestic prices of Nicontaining cold sheets for April 2102 shipment by CNY 1,500. YUSCOof Taiwan also decreased its domestic prices for April 2012shipment by TWD 5,000. POSCO of Korea left its list pricesunchanged, and has kept an attitude to maintain its current priceswith no expansion of the discount range. As prices are linked to those of nickel, the US and European millslowered their nickel surcharges by USD 124 and EUR 98 respectively.The US and European mills are going to offset reduction of thenickel surcharges by increasing their base prices but it isdoubtful whether they will succeed in such increase. The worldwide prices of Ni containing cold stainless sheets aredropping. Fine Gold Jewellery
Usually, March through June 2012 is the demand season ofcold stainless sheets. Therefore, under normal circumstances, thenickel prices are to rise but it is now showing different movesfrom the past. In November 2011, when the nickel prices became the level of USD 8per pound, the market prices of Ni containing cold sheets in Asiawas the level of USD 2,800 CNF. The current prices also become USD2,900 to USD 2,850 CNF under falling below USD 8. But those havenot dropped to USD 2,800 yet. Silver Brooch Pin
The reasons why such prices have notreached the level of last year are thought that prices of ordinarysteel products are rising, and those of Cr containing stainlesssheets are rising due to price increase of chromium. The inventory level in the Wuxi market of China was 215,000 tonnesin late March, which is thought not to be over plus. As eachcustomer has not stopped its spot purchase, the inventory level isseen to be low. Nevertheless, as the anticipation of nickel priceis uncertain, an aggressive stance to buy of a customer is not seenat all. The Japanese mills increased their prices by around USD 200 tillnow but are showing a stance to proceeding with negotiations at USD3,000 CNF as their bottom prices, which are different by USD 100 toUSD 150 from those of the Korean and Taiwanese mills.
They will beable to proceed with negotiations with a customer having close tiesbut even such negotiations will become difficult if pricedifference expands further. In that regard, the environments arebecoming tough. Source – TEX Report Limited.